Milton Keynes Leisure Management

Descriptions

This procurement relates to the Council appointing an operator to undertake the management of three (3) leisure facilities within Milton Keynes including Bletchley Leisure Centre, Woughton Leisure Centre and Windmill Hill Golf course.

The estimated value of the leisure facilities is £6.5million (Excluding VAT) for the 15 year period (taking into account the 5 year extension) This estimated value of the management of the 3 leisure facilities is indicative only.

The Authority is of the view that TUPE is likely to apply to some staff but economic operators will be expected to undertake their own due diligence.

Following the recent ruling that local authorities can now treat leisure services as non-business for VAT purposes, the Authority wishes to understand the potential positive financial impact to them of this approach to the management of their leisure facilities. Tenderers will be required to base their financial submission on a traditional leisure management contract (Standard Bid); however, the Authority would also like to understand the benefits and risks of the Agency Model (Alternative Pricing Option). This is explained further in the procurement documentation. For the purposes of Section 74(1)(a) and paragraph 1 of Schedule 8 of the Procurement Act 2023, Milton Keynes City Council may during the term of the Leisure Operator Contract apply an agency model arrangement to replace the traditional leisure management arrangement. The Council reserves the right to modify the contract terms and conditions to accommodate a move to the agency model arrangement.

The Authority is delivering a major low-carbon infrastructure investment in the form of a city scale District Heat Network (DHN), a key component of its commitment to achieving net zero carbon emissions by 2030, as outlined in the Authority's Strategy for 2050 and Council Plan 2024-2026. In the first phase of the DHN, low-carbon heat will be delivered to several public buildings across the city, helping to reduce reliance on gas combustion heating. As part of the Public Sector Decarbonisation Scheme (PSDS), the Authority has been successful in its application to convert three major public buildings: the city library; Civic building; and Woughton Leisure Centre. Therefore, Tenderers should be aware that Woughton Leisure Centre will move across to the DHN during the term of this contract and that the successful Tenderer will be required to work closely with the Authority to facilitate this transition. This is explained further in the procurement documentation.